单项选择题
Assume that a 10-year Treasury bond has a 12 percent annual coupon, while a 15-year Treasury bond has an 8 percent annual coupon. The yield curve is flat; all Treasury securities have a 10 percent yield to maturity. Which of the following statements is most correct? ( )
A.
The 10-year bond is selling at a discount, while the 15-year bond is selling at a premium.
B.
The 10-year bond is selling at a premium, while the 15-year bond is selling at par.
C.
If interest rates decline, the price of both bonds will increase, but the 15-year bond will have a larger percentage increase in price.
D.
If the yield to maturity on both bonds remains at 10 percent over the next year, the price of the 10-year bond will increase, but the price of the 15-year bond will fall.
E.
Statements c and d are correct.